Wemade, the South Korean game developer listed on Kosdaq, has seen a downturn in its financial performance for the fourth quarter of the previous year, with both operating and net losses expanding, according to the company's latest earnings report released on Tuesday.

In the fourth quarter of 2023, Wemade reported a net loss of 189.5 billion won ($142.6 million), a substantial increase from the 74.4 billion won recorded in the same period of 2022. Operating losses also widened to 70.8 billion won, compared to 28.7 billion won in the fourth quarter of the previous year.

Despite these setbacks, the company managed to achieve a 2.8% year-on-year increase in sales, reaching 118.4 billion won. Wemade's stock reflected the financial challenges, closing down 2.25% at 49,950 won on Tuesday.

The company attributed the growth in sales to the domestic launch of its game Night Crows and a licensing agreement for its MIR franchise. However, the positive sales impact was offset by increasing sales-related and labor costs, leading to the widening operating losses. The company also pointed to losses from stock investments by affiliated companies and the decreased value of convertible bond derivatives as contributing factors to the expansion of net losses.

Night Crows' Sucess in Korea

The anticipated web3 MMORPG, Night Crows, will be launching soon worldwide following its initial success in South Korea. The fantasy game, co-developed with South Korean studio Madngine, has garnered attention for its innovative multi-chain technology.

After a debut in South Korea, Night Crows swiftly ascended the charts on both Google Play and the Apple App Store, accumulating over $151 million in in-app purchase (IAP) sales within just seven months. This remarkable success solidifies Night Crows as one of Wemade's flagship IPs.

Web3 Integrations

In a statement to local news agency Yonhap, Wemade expressed its commitment to navigating challenges and highlighted the strategic moves that fueled the sales growth. The company remains optimistic about future prospects.

Meanwhile, Wemade's subsidiary WEMIX, recently entered into a partnership with Chainlink Labs, marking a strategic move in reshaping the web3 gaming landscape. The collaboration aims to integrate Chainlink's Cross-Chain Interoperability Protocol (CCIP) into the Unagi omnichain ecosystem. WEMIX says it is focused on accelerating the mass adoption of blockchain technology by building a comprehensive web3 services ecosystem.

Token and Blockchain

WEMIX introduced its native utility token $WEMIX via its blockchain subsidiary Wemade Tree in 2020, aligning with its shift from web2 to web3 gaming. The company has successfully launched its own mainnet and stablecoin, reflecting its commitment to blockchain technology adoption.

Wemade is set to address further details about its 2023 performance and unveil upcoming plans during its quarterly earnings call scheduled for Wednesday in Asia. Industry analysts and stakeholders await insights into the company's strategies to overcome the challenges and capitalize on opportunities in the gaming market.